Xbox’s latest restructuring has reportedly cancelled the next project from World’s Edge, the studio responsible for overseeing the Age of Empires franchise. The news follows substantial job cuts across Microsoft’s gaming operations.
Microsoft announced 1,600 immediate redundancies in early July, with further reductions expected in the next fiscal year. The company also divested from several acclaimed studios, including Double Fine and Ninja Theory, while surviving teams such as Doom developer id Software reportedly lost around half their staff.
A further round of cuts affected 268 employees. The accompanying reorganisation moved the Halo series to Activision, placed Obsidian Entertainment under Bethesda Softworks, and transferred World’s Edge to Activision’s oversight.
World’s Edge hit by major cuts
Former World’s Edge creative director Adam Isgreen said in a post on ResetEra that just under half of the studio had been made redundant, including himself.
Software engineer Andrew Martz also wrote on LinkedIn that Microsoft had cancelled the team’s next project as part of the restructuring. Martz said he was laid off only seven days after receiving a promotion, adding: “I guess it is time to pick up the pieces one more time.”
The project’s identity has not been confirmed. Because World’s Edge exists to manage Age of Empires, it may have been a new entry in that series, although a spin-off such as Age of Mythology was also possible.
What World’s Edge has delivered
Xbox Game Studios established World’s Edge in 2019 to guide the Age of Empires series while working with development partners including Relic Entertainment, Forgotten Empires and Tantalus Media.
The studio contributed to the Definitive Editions of the first three Age of Empires games, a remastered version of Age of Mythology and the entirely new Age of Empires 4, which launched in 2021. The series’ development history makes the cancellation significant for fans who follow the franchise across PC and modern gaming platforms.
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A narrower future for Xbox studios
Xbox leadership has indicated that its future strategy will favour established franchises, with teams concentrating on existing series rather than new intellectual properties. World’s Edge was already focused on a major established brand, yet still faced steep reductions and the loss of its next project.
That combination suggests Microsoft may be concentrating investment in a smaller group of high-profile properties, including Halo and Fallout. For now, the future direction of Age of Empires remains uncertain after the studio’s headcount reduction and reported project cancellation.
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